Housebuilder confidence dented by fragile recovery
The value of social housing construction projects starting on site in the second quarter was 40 per cent lower than a year ago according to the latest Glenigan Index.
The Green Power Forum Conference 2010 (GPF) is taking place at the LJMU Art and Design Academy on 14th October. LJMU’s School of the Built Environment have now confirmed it will sponsor the event.
Mr Abraham continued „The latest Glenigan data comes fast on the heels of the sharp 9% jump in second quarter construction output recorded by ONS. Second quarter output has been buoyed by the earlier rise in project starts and industry efforts to make up time lost to bad weather at the start of the year. The weakening in new project starts over the last three months points to an easing in construction output growth during the second half of this year.“
Mike Riley, Director of the School of the Built Environment said that the GPF conference provided the perfect opportunity to promote the department’s projects which are being implemented nationally.
Retail project starts were down 23% in the three months to July compared to a year ago. This is expected to be a temporary blip in what has generally been a growth sector this year. The flow of office and industrial projects remains weak. Additionally, community and amenity, health and education have suffered amid election uncertainty and as departments review their spending programmes.
Overall the Glenigan Non-Residential Index for the three months to July was 22 per cent down on a year ago. Despite restrictive fiscal policy over the next few years, a more widespread strengthening in private sector activity is anticipated over the two year forecast period supported by renewed private sector confidence and investment.
Civil engineering continues to be the industry bright spot with the Glenigan Civil Engineering Index for July 19% up on a year ago. While the growth rate in the underlying value of utility projects fell, infrastructure project starts increased by a third. „In particular growth was boosted by two railway projects in the South East of England with a combined value of 160m that started on site in June“ noted Mr Abraham.
„Regionally only the East Midlands, Wales and the North East saw significant rises in the value of new work compared to a year ago while the flow of new work dropped by a quarter or more in London, Northern Ireland, the East and South East“ said Mr Wilen. The overall Glenigan Index for the three months to July showed a 13 per cent fall on a year ago to 78.1, the lowest seen this year and significantly below the 2006 Index base.
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